1/ INTRODUCING AVANTI BANK, a new US #bank to serve #digitalasset industry, offering new products & svcs not currently available in USD mkts along w/ tech partner @Blockstream. #Wyoming-based. We’re preparing long process of charter application & aim to open early 2021. @AvantiBT

2/ Co-founder/team news soon. I’ve founded @AvantiBT w/ key support from top people in #crypto + important innovators from traditional finance. Seed funding round recently closed. Avanti will serve institutional customers that need services around #Bitcoin & #cryptoassets.

3/ A critical piece of US mkt infrastructure is missing—a regulated #bank that can act as bridge to Fed for pymts + custody #crypto for BIG institutional money (pensions/endowmts/foundtns/corps/sov wealth) who need this b4 entering #crypto in a big way. Regulation had blocked it.

4/ Thx to the wise #Wyoming legislature & @GovernorGordon, Wyoming paved the way for such banks to exist via its special-purpose depository institution (SPDI) law, which is the optimal regulatory-compliant structure in the US for providing financial services around #crypto.

5/ For various regulatory reasons, existing US banks & trust companies can’t provide optimal services to #crypto. Avanti plans to break that logjam & thereby help keep the US from falling behind other countries whose regulated banks are already serving institutions in this mkt.

6/ SPDIs have VERY high reg rqmts, incl that all fiat deposits must be 100% reserved, assets can't be rehypothecated + BY FAR strictest, fairest consumer protections in the industry. Many #crypto industry ppl advised & commented on early drafts of #Wyoming's SPDI law & its rules.

7/ But wait, what about #NotYourKeysNotYourCoins? @AvantiBT respects this ethos & plans to offer various levels of institutional custody services accordingly (incl multisig signing-as-a-service, new @Blockstream features & more).

8/ Remember, #Wyoming law is uniquely consumer friendly bc it enables custody via #bailment (same legal treatment as valet parking or coat check—u give possession of your property to a service provider, but not legal title, & the service provider can’t use it for its own benefit)

9/ In a #bailment, the concept is your asset remains legally yours even if you give temporary possession of it to a service provider for safekeeping (so if your service provider goes bust while holding your asset in its custody you get it back w/o waiting thru messy bankruptcy).

10/ That stuff MATTERS to BIG institutional investors, who are fiduciaries. Ironically trad securities mkts don’t offer it tho (to use valet parking analogy, securities custodian can rent out your car to Uber driver after u parked it, share only a fraction of the earnings w/ u…

11/… & tell u that you’re lucky to get back your same make & model. Plus if the garage goes bust while in possession of your car, you’re stuck as a creditor in messy bankruptcy). From experience, you can’t know for sure if your custodian actually has your securities. It’s wrong!

12/ #Wyoming took a diff approach based on property rights—ie #crypto custodian should be mere service provider, not counterparty forcing u into a debtor/creditor relationship. That’s esp impt for #crypto since there’s no lender-of-last-resort. WY=best legal regime for consumers!

13/ So, hundreds inquired abt starting an SPDI. I expected a flurry when applications opened 10/1 but until Feb no one applied. Wait wut? Hi capital rqmt tripped up most ( #banks face MUCH higher capital rqmt than trust cos); others couldn't find ppl here willing to work for them;

14/ ...(eg, one #Wyomingite fielded >100 recruiting inquiries b4 agreeing to work for @AvantiBT). Net-net, it’s REALLY DARN HARD to start a #bank. Other SPDI applicants are on the way to #Wyoming—they plan to serve different markets, though, & I'm cheering them on!

15/ But I saw none of them planned to fill the institutional void. There's real customer demand in these mkts--real needs are not being met. I’ve seen this up close & personal (eg, universities have alums wanting to donate #crypto but face HUGE practical hurdles to accepting it;

16/ …foundations recognize they can’t ignore a ~$300bn asset class anymore but realize a custodian doesn’t exist yet that can meet their high fiduciary standards). So, when a group approached me in December to do it, I started thinking seriously about it.

17/ Over Christmas break Dr. Adam Back ( @adam3us) & I had a marathon conf call, during which it became clear @Blockstream & @AvantiBT wld be ideal partners for serving BIG institutional investors that require regulated banks to deliver them services around @Bitcoin in USD markets

18/ Funny, I was standing in Rome’s Imperial Forums during that call w/ @adam3us. After it ended I crossed back from the Imperial Fora over to the older Roman Forum & stopped at the Rostra—a symbol of #decentralized power during Rome’s Republic. It endures & inspires— #fitting.

19/ That’s why the new #bank has a name with a Latin origin. "Avanti" means "forward" or "ahead" in multiple languages ("abante" in Latin). Seemed fitting for a #bank that's moving ahead while also anchored in the history of clear property rights & honest ledgers.

20/ Those following my work previously are familiar w/ my passion for building fair & stable financial systems grounded in clear property rights. If we succeed @AvantiBT could play a role in achieving that, and I'm staking my career on it.

21/ Warning to those easily triggered: @AvantiBT will bring together STRANGE BEDFELLOWS bc it’ll attract the best from the #crypto & trad worlds. I’m comfortable + have deep relationships in both worlds & am equally comfy in NYC’s concrete canyons as in the wilds of #Wyoming.

22/ So, don't be shocked to see people you wouldn't expect coming together in @AvantiBT--not only top people from both the traditional & #crypto worlds, but also from rival protocols within crypto. Avanti will be PROTOCOL NEUTRAL.

23/ First & foremost @AvantiBT will respond to needs of institutional customers. If they want Avanti to service #cryptoassets other than #Bitcoin ? Yep, Avanti will service ‘em if institutions want ‘em, if our engineers can securely do it & if we can handle legal & other risks.

24/ Avanti WILL COMPLY w/ all US federal know-your-customer, anti-money laundering, counter terrorist financing & related laws. These are the law of the land so @AvantiBT will strictly comply, period. I've long written abt why these laws are unconstitutional in their overreach…

25/ ...but they're the law, so compliance isn’t optional. DON'T EVEN THINK ABOUT trying to use @AvantiBT for illegal/nefarious purposes!!!!!!!!! Since Avanti will be critical #crypto infrastructure, we will vigorously defend Avanti’s license & reputation.

26/ Interested in joining @AvantiBT? Watch for job postings or email us at [email protected], describe what job you're looking for, how soon you’ll be available and send a resume. We're based in Cheyenne, WY (90 mins from Denver).

27/ Yes, we're looking for people on ground in #Wyoming now—esp #BSA #compliance experts & bank ops people. Engineers too, although for security reasons the engineering team will be #decentralized & not based at Cheyenne HQ.

28/ Thinking abt moving to #Wyoming? Here’s a fun video that captures the spirit of living in my beloved native state. Spectacular summers, stunning skies, winter wonderland, no state taxes, low cost of living, low crime, no traffic, great neighbors:

29/ Thanks for your interest & watch here for more @AvantiBT news in the coming several months as we go thru the long charter application process. #CowboyOn, #HODL on & #TheWorldNeedsMoreCowboys!!

#END